Designer Brands Inc. (DBI) is one of North America's largest designers, producers and retailers of footwear and accessories, notes Crista Huff, editor of Cabot Undervalued Stocks Advisor.
The company operates DSW Warehouse, The Shoe Company and Shoe Warehouse stores with nearly 1,000 locations in 44 U.S. states and Canada; and Camuto Group.
This spring, Designer Brands will debut the JLO JENNIFER LOPEZ collection, a line of footwear and handbags that will be sold exclusively at DSW Designer Shoe Warehouse stores in the United States and Canada, and on their website.
Consensus earnings estimates project EPS falling 8.4% in fiscal 2019 (January 2020 year end) and growing 19.7% in 2020. The 2020 P/E is low at 7.9.
Fourth quarter results will be reported March 17. Last week, CEO Roger Rawlins reaffirmed his previously stated full year 2019 earnings guidance, and the stock reacted well.
DBI is an undervalued, small-cap stock with a huge dividend yield. The stock has held price support well during this market correction.
Investors who buy now will lock in a very large 7.0% dividend yield, and benefit from the price recovery as the broader market recovers. I rate the stock a "Strong Buy".
